DAX has experienced a significant decline on Friday, as stocks have fallen sharply due to rising concerns regarding the stability of the U.S. banking sector. This follows disclosures from Zions Bancorp and Western Alliance Bancorp on Thursday, revealing their exposure to alleged fraudulent activities by borrowers. The DAX, having previously fallen to 22,682.63, was recorded at 23,775.19, reflecting a decline of 497.74 points or 2.05% recently.

Concerns regarding U.S.-China trade tensions, along with the persistent conflict in Ukraine, are exerting pressure on sentiment. Deutsche Bank and Commerzbank have experienced declines of 6.5% and 3.4%, respectively, influenced by apprehensions regarding the stability of the U.S. banking sector. Zions Bancorporation, a lender based in Utah, announced it would write off $50 million on two loans, whereas Western Alliance, headquartered in Phoenix, indicated it had initiated legal proceedings concerning a bad loan estimated at $100 million.

Rheinmetall has experienced a decline of 5.7%, while Siemens Energy has seen a decrease of 3.8%. MTU Aero Engines is down by 3.2%, and Daimler Truck Holding has fallen by nearly 3%. Allianz, Siemens, Infineon Technologies, Zalando, Heidelberg Materials, Munich RE, SAP, and RWE have experienced declines ranging from 2 to 3%. Adidas, Scout24, Hannover Rueck, and GEA Group are experiencing significant declines.

Shares of automotive supplier Continental are experiencing an increase of over 7.5%, supported by a rating upgrade from Deutsche Bank to “buy”. Deutsche Bank Research has revised the stock’s rating upward following Continental’s third-quarter revenues, EBIT margin, and cash flow surpassing projections. Beiersdorf is experiencing an increase of nearly 1%, while Fresenius, Fresenius Medical Care, and Henkel are showing slight upward movements.